Issue Brief: Detrimental overtime rule in the works

You’ve probably heard about the new overtime rule that’s been proposed by the Department of Labor (DOL). The proposed rule would increase the minimum salary to qualify as an exempt employee from $23,660 per year to $50,440 per year. That would mean that any employee who makes less than $50,440 a year would be qualified to get overtime if he or she is not qualified as exempt. Exempt employees include professional and executive positions, as well as outside sales and a variety of other positions.

We surveyed NALP members to understand how the proposed rule might affect their businesses, and we provided that information to the DOL. Respondents detailed many negative anticipated effects including potential layoffs or pay cuts for employees; less flexible schedules for managers and supervisors; high administrative costs in the implementation of the rule; and loss of benefits to employees reclassified as hourly, non-exempt employees.

In addition to more than doubling the baseline salary qualifications, the DOL also has an aggressive plan for annual increases to the salary basis, giving employers only 60 days to adjust to the increases. Historically, the DOL has updated salary levels every five to nine years—not continuously.

This rule, if implemented, could have significant impacts to landscape industry businesses. The NALP is following the issue closely and lobbying on behalf of the industry, but it’s also important for you to speak with your congressmen and make sure they know this rule will hurt your business.